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Re: asymmReturns post# 126859

Wednesday, 11/27/2019 7:30:49 AM

Wednesday, November 27, 2019 7:30:49 AM

Post# of 186029
Your response supported one of my main points

There hasn't been enough disclosure (product revenue) and guidance regarding gross margins and operating expenses in the near-term (defined as the next twelve months). Cutchens did seem to endorse a 12% net margin target for Q4, but the underlying assumptions weren't explained. Let's hope that changes with the next iteration of the corporate presentation that's supposed to be shared today.

With respect to revenues, I model high top-line growth stories that should experience minimal seasonality like this on a sequential basis. I don't find y/y comparisons that useful particularly given Anshu's guidance is so vague. I think the sequential approach is better in this case because the company is mostly just fulfilling backlog at this point, which is predicated on additional forms of financing. Moreover, additional revenue streams like the french fry business likely exhibit minimal seasonality. That said, more than one approach to hopefully arrive at a fairly accurate estimate...at least for revenues!